##### Table of Contents



United States
Securities and Exchange Commission
 Washington, D.C. 20549
 Form 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2010
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 333-150925-03
 ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
  Delaware
    
    26-2202544(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)Westpointe Corporate Center One1550 Coraopolis Heights Rd. 2nd FloorMoon Township, PA
    
    15108(Address of principal executive offices)
    
    (zip code)
 (412) 262-2830
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ
 o þ




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##### 



ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
(A Delaware Limited Partnership)
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
 PAGEPART I. FINANCIAL INFORMATIONItem 1: Financial StatementsBalance Sheets as of September 30, 2010 and December 31, 2009
    
    
    3Statements of Operations for the Three Months and Nine Months ended September 30, 2010 and 2009
    
    
    4Statement of Changes in Partners Capital for the Nine Months ended September 30, 2010
    
    
    5Statements of Cash Flows for the Nine Months ended September 30, 2010 and 2009
    
    
    6Notes to Financial Statements
    
    
    7-18Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    18-22Item 4: Controls and Procedures
    
    
    22PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    23Item 6: Exhibits
    
    
    23SIGNATURES
    
    
    24CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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##### Table of Contents



PART 1. FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
 
 BALANCE SHEETS
 September 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    18,500
    
    
    $
    1,510,300Accounts receivable  affiliate
    
    
    5,481,200
    
    
    
    5,127,800Short-term hedge receivable due from affiliate
    
    
    5,765,500
    
    
    
    3,846,900Total current assets
    
    
    11,265,200
    
    
    
    10,485,000Oil and gas properties, net
    
    
    120,348,500
    
    
    
    130,386,300Long-term hedge receivable due from affiliate
    
    
    6,308,200
    
    
    
    3,386,700$
    137,921,900
    
    
    $
    144,258,000LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    462,000
    
    
    $
    253,200Short-term hedge liability due to affiliate
    
    
    17,100
    
    
    
    47,000Total current liabilities
    
    
    479,100
    
    
    
    300,200Asset retirement obligation
    
    
    1,664,600
    
    
    
    1,592,900Long-term hedge liability due to affiliate
    
    
    958,400
    
    
    
    552,600Partners capital:Managing general partner
    
    
    12,820,800
    
    
    
    14,734,100Investors partners (20,152.50 units)
    
    
    111,758,900
    
    
    
    122,017,900Accumulated other comprehensive income
    
    
    10,240,100
    
    
    
    5,060,300Total partners capital
    
    
    134,819,800
    
    
    
    141,812,300$
    137,921,900
    
    
    $
    144,258,000
   3




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
 
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009REVENUESNatural gas and oil
    
    $
    5,252,400
    
    
    $
    10,156,300
    
    
    $
    17,614,600
    
    
    $
    23,851,800Interest income
    
    
    400
    
    
    
    2,000
    
    
    
    1,000
    
    
    
    2,200Total revenues
    
    
    5,252,800
    
    
    
    10,158,300
    
    
    
    17,615,600
    
    
    
    23,854,000COSTS AND EXPENSESProduction
    
    
    1,922,800
    
    
    
    3,425,200
    
    
    
    6,453,300
    
    
    
    6,800,500Depletion
    
    
    2,986,000
    
    
    
    3,646,800
    
    
    
    10,162,900
    
    
    
    9,511,100Accretion of asset retirement obligation
    
    
    23,900
    
    
    
    22,100
    
    
    
    71,700
    
    
    
    62,700General and administrative
    
    
    45,300
    
    
    
    93,700
    
    
    
    204,100
    
    
    
    209,300Total expenses
    
    
    4,978,000
    
    
    
    7,187,800
    
    
    
    16,892,000
    
    
    
    16,583,600Net earnings
    
    $
    274,800
    
    
    $
    2,970,500
    
    
    $
    723,600
    
    
    $
    7,270,400Allocation of net earnings (loss):Managing general partner
    
    $
    715,100
    
    
    $
    1,645,200
    
    
    $
    2,346,400
    
    
    $
    4,130,400Limited partners
    
    $
    (440,300
    )
    
    $
    1,325,300
    
    
    $
    (1,622,800
    )
    
    $
    3,140,000Net earnings (loss) per limited partnership unit
    
    $
    (22
    )
    
    $
    66
    
    
    $
    (81
    )
    
    $
    156
   4




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##### Table of Contents



ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL
 FOR THE NINE MONTHS ENDED
 September 30, 2010
 (Unaudited)
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    Income
    
    
    TotalBalance at January 1, 2010
    
    $
    14,734,100
    
    
    $
    122,017,900
    
    
    $
    5,060,300
    
    
    $
    141,812,300Partners capital contributions:Syndication and offering costs
    
    
    (200
    )
    
    
    
    
    
    
    
    
    
    
    (200
    )Total contributions
    
    
    (200
    )
    
    
    
    
    
    
    
    
    
    
    (200
    )Syndication and offerings, immediately
charged to capital
    
    
    200
    
    
    
    
    
    
    
    
    
    
    
    200Participation in revenues and expenses:Net production revenues
    
    
    3,292,600
    
    
    
    7,868,700
    
    
    
    
    
    
    
    11,161,300Interest income
    
    
    300
    
    
    
    700
    
    
    
    
    
    
    
    1,000Depletion
    
    
    (865,200
    )
    
    
    (9,297,700
    )
    
    
    
    
    
    
    (10,162,900
    )Accretion of asset retirement obligation
    
    
    (21,100
    )
    
    
    (50,600
    )
    
    
    
    
    
    
    (71,700
    )General and administrative
    
    
    (60,200
    )
    
    
    (143,900
    )
    
    
    
    
    
    
    (204,100
    )Net earnings (loss)
    
    
    2,346,400
    
    
    
    (1,622,800
    )
    
    
    
    
    
    
    723,600Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    5,179,800
    
    
    
    5,179,800Subordination
    
    
    (1,536,200
    )
    
    
    1,536,200
    
    
    
    
    
    
    
    Asset contributions
    
    
    125,100
    
    
    
    
    
    
    
    
    
    
    
    125,100Distribution to partners
    
    
    (2,848,600
    )
    
    
    (10,172,400
    )
    
    
    
    
    
    
    (13,021,000
    )Balance at September 30, 2010
    
    $
    12,820,800
    
    
    $
    111,758,900
    
    
    $
    10,240,100
    
    
    $
    134,819,800
   5




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
 
 STATEMENTS OF CASH FLOWS
 (Unaudited)
 Nine Months EndedSeptember 30,2010
    
    
    2009Cash flows from operating activities:Net earnings
    
    $
    723,600
    
    
    $
    7,270,400Adjustments to reconcile net earnings to net cash provided by
operating activities:Depletion
    
    
    10,162,900
    
    
    
    9,511,100Non cash loss on derivative value
    
    
    715,600
    
    
    
    Accretion of asset retirement obligation
    
    
    71,700
    
    
    
    62,700Increase in accounts receivable-affiliate
    
    
    (353,400
    )
    
    
    (9,696,600
    )Increase in accrued liabilities
    
    
    208,800
    
    
    
    33,400Net cash provided by operating activities
    
    
    11,529,200
    
    
    
    7,181,000Cash flows from investing activities:Oil and gas well drilling contract paid to MGP
    
    
    
    
    
    
    (45,492,900
    )Net cash used in financing activities
    
    
    
    
    
    
    (45,492,900
    )Cash flows from financing activities:Partners capital contribution
    
    
    
    
    
    
    24,653,200Distributions to partners
    
    
    (13,021,000
    )
    
    
    (7,179,400
    )Net cash (used in) provided by financing activities
    
    
    (13,021,000
    )
    
    
    17,473,800Net decrease in cash and cash equivalents
    
    
    (1,491,800
    )
    
    
    (20,838,100
    )Cash and cash equivalents at beginning of period
    
    
    1,510,300
    
    
    
    20,839,700Cash and cash equivalents at end of period
    
    $
    18,500
    
    
    $
    1,600Supplemental Schedule of non-cash investing and financing activities:Assets contributed by (returned to) managing general partner:Tangible drilling costs
    
    $
    125,100
    
    
    $
    13,165,100Lease costs
    
    
    
    
    
    
    1,303,700Syndication and offering costs
    
    
    (200
    )
    
    
    1,500$
    124,900
    
    
    $
    14,470,300Asset retirement obligation
    
    $
    
    
    
    $
    512,400
   6




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
 
 NOTES TO FINANCIAL STATEMENTS
 September 30, 2010
 (Unaudited)
 NOTE 1  BASIS OF PRESENTATION
   NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Use of Estimates
   Fair Value of Financial Instruments
   7




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Oil and Gas Properties
    Impairment of Long-Lived Assets
     8




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Impairment of Long-Lived Assets (Continued)
  Working Interest
  Revenue Recognition
    9




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Comprehensive Income (Loss)
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net earnings
    
    $
    274,800
    
    
    $
    2,970,500
    
    
    $
    723,600
    
    
    $
    7,270,400Other comprehensive income (loss):Unrealized holding gain on hedging contracts
    
    
    3,559,100
    
    
    
    2,135,100
    
    
    
    8,966,700
    
    
    
    9,649,100Less: reclassification adjustment for gains
realized in net earnings
    
    
    (1,153,100
    )
    
    
    (3,973,400
    )
    
    
    (3,786,900
    )
    
    
    (6,677,600
    )Total other comprehensive income (loss)
    
    
    2,406,000
    
    
    
    (1,838,300
    )
    
    
    5,179,800
    
    
    
    2,971,500Comprehensive income
    
    $
    2,680,800
    
    
    $
    1,132,200
    
    
    $
    5,903,400
    
    
    $
    10,241,900
 Recently Adopted Accounting Standards
     10




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Adopted Accounting Standards (Continued)
  Recently Issued Accounting Standards
    11




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 3  OIL AND GAS PROPERTIES
  September 30,
    
    
    December 31,2010
    
    
    2009Natural gas and oil properties:Proved properties:Leasehold interests
    
    $
    2,774,100
    
    
    $
    2,785,500Wells and related equipment
    
    
    220,782,200
    
    
    
    221,106,500223,556,300
    
    
    
    223,892,000Accumulated depletion
    
    
    (103,207,800
    )
    
    
    (93,505,700
    )$
    120,348,500
    
    
    $
    130,386,300
 NOTE 4  ASSET RETIREMENT OBLIGATIONS
    Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Asset retirement obligation at beginning of
period
    
    $
    1,640,700
    
    
    $
    1,510,000
    
    
    $
    1,592,900
    
    
    $
    957,000Liabilities incurred from drilling wells
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    512,400Accretion expense
    
    
    23,900
    
    
    
    22,100
    
    
    
    71,700
    
    
    
    62,700Asset retirement obligation at end of period
    
    $
    1,664,600
    
    
    $
    1,532,100
    
    
    $
    1,664,600
    
    
    $
    1,532,100
  12




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS
     13




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
  Fair Value of Derivative Instruments:
 Asset Derivatives
    
    
    
    
    Liability DerivativesDerivatives in
    
    
    
    Fair Value
    
    
    
    
    Fair ValueCash Flow
    
    Balance Sheet
    
    September 30,
    
    
    December 31,
    
    
    Balance sheet
    
    September 30,
    
    
    December 31,Hedging Relationships
    
    Location
    
    2010
    
    
    2009
    
    
    Location
    
    2010
    
    
    2009Commodity Contracts
    
    Current Assets
    
    $
    5,765,500
    
    
    $
    3,846,900
    
    
    Current liabilities
    
    $
    (17,100
    )
    
    $
    (47,000
    )Long-Term Assets
    
    
    6,308,200
    
    
    
    3,386,700
    
    
    Long-term liabilities
    
    
    (958,400
    )
    
    
    (552,600
    )Total Derivatives
    
    
    
    $
    12,073,700
    
    
    $
    7,233,600
    
    
    
    
    $
    (975,500
    )
    
    $
    (599,600
    )
 Effects of Derivative Instruments on Statements of Operations:
 Gain
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    Reclassified from OCI into Net Earnings(Effective Portion)
    
    
    Location of Gain
    
    (Effective Portion)Derivatives in
    
    Three Months Ended
    
    
    Reclassified from Accumulated
    
    Three Months EndedCash Flow
    
    September 30,
    
    
    September 30,
    
    
    OCI into Net Earnings
    
    September 30,
    
    
    September 30,Hedging Relationships
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    2010
    
    
    2009Commodity Contracts
    
    $
    3,559,100
    
    
    $
    2,135,100
    
    
    Natural Gas and Oil Revenue
    
    $
    1,153,100
    
    
    $
    3,973,400
 Gain
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    Reclassified from OCI into Net Earnings(Effective Portion)
    
    
    Location of Gain
    
    (Effective Portion)Derivatives in
    
    Nine Months Ended
    
    
    Reclassified from Accumulated
    
    Nine Months EndedCash Flow
    
    September 30,
    
    
    September 30,
    
    
    OCI into Net Earnings
    
    September 30,
    
    
    September 30,Hedging Relationships
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    2010
    
    
    2009Commodity Contracts
    
    $
    8,966,700
    
    
    $
    9,649,100
    
    
    Natural Gas and Oil Revenue
    
    $
    3,786,900
    
    
    $
    6,677,600
  Natural Gas Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (MMbtu) (1)
    
    
    (per MMbtu) (1)
    
    
    Asset (2)2010
    
    
    529,700
    
    
    $
    7.242
    
    
    $
    1,752,4002011
    
    
    1,367,200
    
    
    
    6.856
    
    
    
    3,327,2002012
    
    
    1,027,400
    
    
    
    7.172
    
    
    
    2,140,3002013
    
    
    631,300
    
    
    
    6.578
    
    
    
    822,9002014
    
    
    214,500
    
    
    
    5.897
    
    
    
    97,000$
    8,139,800
  14




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 Natural Gas Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (MMbtu) (1)
    
    
    (per MMbtu) (1)
    
    
    Asset (Liability) (2)2010
    
    Puts purchased
    
    
    85,200
    
    
    $
    5.821
    
    
    $
    171,6002010
    
    Calls sold
    
    
    85,200
    
    
    
    7.041
    
    
    
    (100
    )2011
    
    Puts purchased
    
    
    690,100
    
    
    
    6.449
    
    
    
    1,467,4002011
    
    Calls sold
    
    
    690,100
    
    
    
    7.560
    
    
    
    (29,700
    )2012
    
    Puts purchased
    
    
    573,800
    
    
    
    6.025
    
    
    
    878,1002012
    
    Calls sold
    
    
    573,800
    
    
    
    7.194
    
    
    
    (187,800
    )2013
    
    Puts purchased
    
    
    665,900
    
    
    
    5.744
    
    
    
    983,6002013
    
    Calls sold
    
    
    665,900
    
    
    
    6.933
    
    
    
    (474,200
    )2014
    
    Puts purchased
    
    
    244,400
    
    
    
    5.621
    
    
    
    375,7002014
    
    Calls sold
    
    
    244,400
    
    
    
    6.732
    
    
    
    (247,400
    )$
    2,937,200
 Crude Oil Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (Bbl) (1)
    
    
    (per Bbl) (1)
    
    
    Asset (3)2010
    
    
    500
    
    
    $
    97.061
    
    
    $
    8,9002011
    
    
    1,600
    
    
    
    88.498
    
    
    
    6,4002012
    
    
    1,200
    
    
    
    88.093
    
    
    
    1,1002013
    
    
    300
    
    
    
    88.398
    
    
    
    1002014
    
    
    
    
    
    
    
    
    
    
    $
    16,500
  15




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ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 Crude Oil Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (Bbl) (1)
    
    
    (per Bbl) (1)
    
    
    Asset (Liability) (3)2010
    
    Puts purchased
    
    
    300
    
    
    $
    85.000
    
    
    $
    2,1002010
    
    Calls sold
    
    
    300
    
    
    
    112.220
    
    
    
    2011
    
    Puts purchased
    
    
    1,000
    
    
    
    77.563
    
    
    
    6,4002011
    
    Calls sold
    
    
    1,000
    
    
    
    101.861
    
    
    
    (4,500
    )2012
    
    Puts purchased
    
    
    800
    
    
    
    76.952
    
    
    
    7,0002012
    
    Calls sold
    
    
    800
    
    
    
    102.368
    
    
    
    (6,400
    )2013
    
    Puts purchased
    
    
    200
    
    
    
    76.952
    
    
    
    2,3002013
    
    Calls sold
    
    
    200
    
    
    
    103.269
    
    
    
    (2,200
    )2014
    
    Puts purchased
    
    
    
    
    
    
    
    
    
    
    2014
    
    Calls sold
    
    
    
    
    
    
    
    
    
    
    $
    4,700Total Net Asset
    
    
    $
    11,098,200
 
 (1)
    
    MMBTU represents million British Thermal Units. Bbl represents barrels.(2)
    
    Fair value based on forward NYMEX natural gas prices, as applicable.(3)
    
    Fair value based on forward WTI crude oil prices, as applicable. NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1
 Level 2 
 Level 3 
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
   16




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##### Table of Contents



ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
  NOTE 7  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
  
    
    Administrative costs, which are included in general and administrative expenses in
the Partnerships statements of operations, are payable at $75 per well per month.
Administrative costs incurred for the three and nine months ended September 30, 2010
were $37,300 and $111,700, respectively. Administrative costs incurred for the three and
nine months ended September 30, 2009 were $32,500 and $65,200, respectively.
 
    
    Monthly well supervision fees, which are included in production expenses in the
Partnerships statements of operations, are payable at $975 per well per month for
Marcellus wells and $1,500, for New Albany and Indiana Wells. For all other wells, a fee
of $392 is charged per well per month for operating and maintaining the wells. Well
supervision fees incurred for the three and nine months ended September 30, 2010 were
$302,400 and $918,100, respectively. Supervision fees incurred for the three and nine
months ended September 30, 2009 were $274,900 and $532,800, respectively.
 
    
    Transportation fees, which are included in production expenses in the Partnerships
statements of operations, for the three and nine months ended September 30, 2010 were
$476,600 and $1,780,300, respectively. Transportation fees incurred for the three and
nine months ended September 30, 2009 were $1,228,300 and $2,968,100, respectively.
 
    
    Assets contributed from the MGP, which are disclosed on the Partnerships statements
of cash flows as a non-cash activity, for the nine months ended September 30, 2010 and
2009 were $125,100 and $14,468,800, respectively.
  Subordination by Managing General Partner
  NOTE 8  COMMITMENTS AND CONTINGENCIES
 Legal Proceedings
    17




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##### Table of Contents



ATLAS RESOURCES PUBLIC 18-2008 (A) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 9 — SUBSEQUENT EVENT-MERGER AGREEMENT
 )
    
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)
 Forward-Looking Statements
 When used in this Form 10-Q , the words believes, anticipates, expects and similar
expressions are intended to identify forward-looking statements. There are risks and uncertainties
that could cause actual results to differ materially from the results stated or implied in this
document. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. We undertake no obligation to publicly release the results
of any revisions to forward-looking statements which we may make to reflect events or circumstances
after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.
 BUSINESS OVERVIEW
    18




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##### Table of Contents



Results of Operations
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Production revenues (in thousands):Gas
    
    $
    4,729
    
    
    $
    9,875
    
    
    $
    16,159
    
    
    $
    23,435Oil
    
    
    311
    
    
    
    207
    
    
    
    927
    
    
    
    343Liquid
    
    
    212
    
    
    
    74
    
    
    
    529
    
    
    
    74Total
    
    $
    5,252
    
    
    $
    10,156
    
    
    $
    17,615
    
    
    $
    23,852Production volumes:Gas (mcf/day) (1)
    
    
    8,240
    
    
    
    13,897
    
    
    
    9,443
    
    
    
    12,255Oil (bbls/day) (1)
    
    
    60
    
    
    
    33
    
    
    
    60
    
    
    
    21Liquid (bbls/day) (1)
    
    
    51
    
    
    
    33
    
    
    
    41
    
    
    
    11Total (mcfe/day) (1)
    
    
    8,906
    
    
    
    14,293
    
    
    
    10,049
    
    
    
    12,447Average sales prices: (2)Gas (per mcf) (1) (3)
    
    $
    6.53
    
    
    $
    7.72
    
    
    $
    6.54
    
    
    $
    7.00Oil (per bbl) (1) (4)
    
    $
    57.15
    
    
    $
    68.12
    
    
    $
    57.02
    
    
    $
    60.78Liquid (per bbl) (1)
    
    $
    45.68
    
    
    $
    21.23
    
    
    $
    47.25
    
    
    $
    21.23Average production costs:As a percent of revenues
    
    
    37
    %
    
    
    34
    %
    
    
    37
    %
    
    
    29
    %Per mcfe (1)
    
    $
    2.43
    
    
    $
    2.66
    
    
    $
    2.41
    
    
    $
    2.01Depletion per mcfe
    
    $
    3.78
    
    
    $
    2.85
    
    
    $
    3.80
    
    
    $
    2.81
 (1)
    
    Mcf represents thousand cubic feet, mcfe represents thousand cubic feet
equivalent, and bbls represents barrels. Bbls are converted to mcfe using the ratio
of six mcfs to one bbl.(2)
    
    Average sales prices represent accrual basis pricing after reversing the effect
of previously recognized gains resulting from prior period impairment charges.(3)
    
    Average gas prices are calculated by including in total revenue derivative gains
previously recognized into income and dividing by the total volume for the period.
Previously recognized derivative gains were $222,500 and $709,300 for the three and
nine months ended September 30, 2010, respectively. The derivative gains are included
in other comprehensive income and resulted from prior period impairment charges.(4)
    
    Average oil prices are calculated by including in total revenue derivative gains
previously recognized into income and dividing by the total volume for the period.
Previously recognized derivative gains were $2,200 and $6,300 for the three and nine
months ended September 30, 2010, respectively. The derivative gains are included in
other comprehensive income and resulted from prior period impairment charges.  19




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##### Table of Contents



Natural Gas Revenues.
  Oil Revenues.
  Natural Gas Liquids Revenue
 Expenses.
   20




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##### Table of Contents



Liquidity and Capital Resources
      Subordination by Managing General Partner
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
   21




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Fair Value of Financial Instruments
  Level 1 
 Level 2 
 Level 3 
   
 ITEM 4. CONTROLS AND PROCEDURES
     22




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PART II OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
   
 ITEM 6. EXHIBITS
 
 EXHIBIT INDEX
 Exhibit No.
    
    Description4.0
    
    
    Amended and Restated Certificate and Agreement of Limited Partnership for Public 18-2008 (A) L.P. (1)10.1
    
    
    Drilling and Operating Agreement for Atlas America Public 18-2008 (A) L.P. (1)31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification.31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification.32.1
    
    
    Section 1350 Certification.32.2
    
    
    Section 1350 Certification.
 
 (1)
    
    Filed on October 15, 2008 in the Form S-1A Registration Statement dated October 15, 2008, File No. 333-150925-03  23




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##### Table of Contents



SIGNATURES
  Atlas Resources Public 18-2008 (A) L.P.
Atlas Resources, LLC, Managing General PartnerDate:  November 12, 2010
    By:
    /s/ FREDDIE M. KOTEKFreddie M. Kotek,Chairman of the Board of Directors,
Chief Executive Officer and PresidentDate:  November 12, 2010
    By:
    /s/ MATTHEW A. JONESMatthew A. Jones,Chief Financial Officer  24